Kenwood 2007 Annual Report Download - page 15

Russia and China. In anticipation of future business expansion and
growth of the Chinese market, Kenwood accelerated its growth
strategy by having the Shanghai Plant commence production of
Land Mobile Radio equipment.
In addition, Kenwood drove formation of the industrial
infrastructure in the field of Digital Land Mobile Radio by starting up
a Memorandum of Understanding Group jointly with mobile radio
companies in Europe in March 2007 in order to promote
establishment of a standard for Digital Land Mobile Radio systems
intended for private-sector companies in that region, and by
entering into a tie-up with the EADS Group, a leading European
aerospace and defense systems, with a view to expanding sales of
Digital Land Mobile Radio equipments intended for the public safety
sector in North America.
In the wake of the rapid diffusion of digital media and the
recovering demand for high-class audio products, Kenwood has
completed selective removal of conventional models by the end of
the first half of the fiscal year under review, and simultaneously
made active efforts to enhance line-up of the digital audio players
capable of reproducing the highest of sound quality with its
independent technologies as well as high-class pure audio products
intended for those users who attach high priority to sound quality.
Elsewhere, Kenwood began driving its high added-value strategy
by commercializing pure audio products that made it possible to
seamlessly integrate various media equipment and help realize the
“Seamless Entertainment World.”
Establishing a corporate policy to reduce the impact on the
environment and make contributions to “coexistence with the global
environment,” Kenwood is promoting environmental preservation
activities. Two major pillars of these activities are: creation of green
products that have less impact on the environment; and
environmental preservation campaigns (energy conservation,
reduction of waste and reduction of office paper) in business
activities. We achieved “zero waste emissions” at all major Japanese
bases, including the head office and development/design bases,
between July and September in 2006.
As part of its promotional campaigns and brand strategy
commemorating Kenwood’s 60th anniversary, Kenwood moved
forward with commercialization of “TRIO Model” in both of the
“sound” and “wireless communication” fields that inherit its
business tradition. Kenwood released its limited-edition prestige
radio equipment for amateur radio operators in July 2006, and
released its limited-edition prestige pure audio systems last
December. Also, as a new initiative, Kenwood commercialized and
released limited-edition prestige car audio product, the first car
electronics product under the “TRIO” brand in Japan, in April 2007.
For the strengthening of brand presence, Kenwood renewed its
official supplier contract on supply of radio systems with the Team
Vodafone McLaren Mercedes that was participating in the Formula
One (F1) world championship race that reigns the world of motor
sports, and began posting its brand logo in addition to the supports
it has heretofore provided the team.
Kenwood considers it one of the most critical management
challenges to ensure that its profit will be returned to its
shareholders in a stable manner, and is committed to deciding upon
dividends of surplus and other appropriations by giving due and
comprehensive considerations to its earnings capabilities and
financial position.
Based on this policy, and bearing in mind that surplus should be
applied toward strategic investments aimed at its future growth,
Kenwood decided to pay a year-end dividend of two yen per share,
the same amount as in the previous fiscal year, from the perspective
of paying stable dividends on an ongoing basis.
For similar reasons, Kenwood expects to pay a year-end dividend
of two yen per share for the fiscal year ending March 2008.
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Home Electronics Business
Kenwood drove its high value-added strategy through
enhanced line-up of new premium products
Initiatives for environmental preservation
Strengthening brand presence and
business promotions through a
campaign based around Kenwood’s
60th anniversary
Basic policy for distribution of profit and
dividends for fiscal years ended March
2007 and ending March 2008
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Annual Report 2007
Result from investments in strategic development (an example)
“Seamless Entertainment World”
by integrating Car Electronics and Home Electronics
Home audio system
USB devices
Car audio system
Recording
Reproduction
Reproduction
USB
USB
USB
Navigation system integrated with AV
system for Japanese market (with
built-in One-Segment TV tuner)
Navigation system integrated with
AV system for overseas markets
(All-in-one type)
Digital Land Mobile Radio